TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 155

11.2.87

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9.

Private consumption expenditure firmed up in the

latter part of 1986, resulting in a growth rate of 7% for

the year as a whole. Capital investment also showed a

marked improvement, growing by 7% in 1986 (3), after a

decline of 2% in 1985. Expenditure on plant and machinery

recorded an increase of about 8%. There was a

particularly welcome increase in such expenditure by

manufacturers, reflecting greater activity in the

manufacturing sector, and confidence that this activity

will continue.

(3)

1010

Building and construction

0.1

Plant and machinery

7.7

Real estate developers' margin

11.6

Transfer costs of land and

buildings

29.7

Gross domestic fixed

capital formation

6.7

Retained imports of plant and machinery for use by manufacturers increased by about 26% in 1986.

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